HS 170490 Other

HS code 170490, covering 'Other' confectionery, has diverse duty rates globally. For instance, the U.S. Most Favored Nation (MFN) rate is 12.00% ad valorem. The EU's TARIC system shows rates that can be around 8.00% ad valorem, but can also include specific duties like 9.10% + 45.10 EUR / 100 kg, with a maximum of 18.90% + 16.50 EUR / 100 kg. The UK Trade Tariff also presents varied rates, potentially around 9.00% + EA (Environmental Levy) with a maximum of 18.70% + ADSZ (Anti-Dumping and Safeguard Duties). Preferential rates under Free Trade Agreements (FTAs) significantly reduce or eliminate these duties. For example, goods from Bahrain (BH), Chile (CL), Jordan (JO), South Korea (KR), Morocco (MA), Oman (OM), Peru (PE), and Singapore (SG) may be eligible for duty-free entry under specific FTAs. Importers must consult the specific tariff schedule of the importing country and any applicable trade agreements to determine the precise rate.

Mixed duty rates, common for HS 170490, combine an ad valorem (percentage of value) component with a specific duty (per unit of weight or volume). For example, a rate of '9.10% ad valorem + 45.10 EUR / 100 kg MAX 18.90% + 16.50 EUR / 100 kg' means you pay both a percentage of the value and a per-kilogram charge, up to a certain combined maximum.

Let's consider an example: An importer brings in 1,000 kg of confectionery valued at €5,000. The applicable duty rate is 9.10% ad valorem + 45.10 EUR / 100 kg.

1. Ad Valorem Duty: 9.10% of €5,000 = €455.
2. Specific Duty: (45.10 EUR / 100 kg) * 1,000 kg = 4,510 EUR.
3. Total Initial Duty: €455 + 4,510 EUR = €4,965.

Now, we check the maximums:

• Maximum Ad Valorem: 18.90% of €5,000 = €945.
• Maximum Specific Duty: (16.50 EUR / 100 kg) * 1,000 kg = €1,650.
• Total Maximum Duty: €945 + €1,650 = €2,595.

Since the initial calculated duty (€4,965) exceeds the maximum allowed duty (€2,595), the importer will pay the maximum amount: €2,595. This calculation demonstrates the importance of checking both components and the maximum thresholds.

HS code 170490 is a residual category, meaning it applies to sugar confectionery not specifically listed in other headings within Chapter 17. The primary classification criteria revolve around the presence of sugar and the absence of specific characteristics that would place the product in other headings. Key considerations include:

1. Sugar Content: The product must be primarily sugar-based. Chapter 17 covers sugars, sugar confectionery, and beet sugar. If the product is not primarily sugar (e.g., chocolate products, which are typically Chapter 18), it would be classified elsewhere.
2. Exclusion from Other Headings: This code is for 'other' confectionery. It excludes items like:
   • White sugar (1701)
   • Raw cane sugar (1701)
   • Other sugars (1702)
   • Honey (1702)
   • Caramel (1702)
   • Chocolate and other food preparations containing cocoa (Chapter 18)
   • Fruit, nuts, etc., prepared or preserved with sugar (Chapter 20)
3. Form and Preparation: This includes items like chewing gum, hard candies, soft candies, jellies, marshmallows, and other sugar-based sweets not covered by more specific descriptions.

Importers should refer to the Explanatory Notes of the Harmonized System (WCO) and the specific national tariff rulings for detailed guidance on distinguishing products that fall under 1704.90 from those classified elsewhere.

Standard import documentation is generally required for HS code 170490. This typically includes:

1. Commercial Invoice: Detailing the seller, buyer, description of goods, quantity, unit price, total price, currency, and terms of sale.
2. Packing List: Outlining the contents of each package, including weights and dimensions.
3. Bill of Lading (Ocean Freight) or Air Waybill (Air Freight): Evidence of the shipment contract and receipt of goods.
4. Certificate of Origin: To claim preferential duty rates under trade agreements, if applicable. This document certifies the country where the goods were manufactured.
5. Import Declaration (Customs Entry Form): Submitted to customs authorities, accurately declaring the HS code, value, quantity, and origin of the goods.
6. Food Safety and Labeling Compliance: Depending on the importing country's regulations, documentation proving compliance with food safety standards, ingredient declarations, and labeling requirements may be necessary. This can include health certificates or phytosanitary certificates for certain ingredients.

Importers should verify the specific documentation requirements with the customs authority of the destination country, as additional or specific documents might be mandated based on the product's composition or origin.

Several major trade agreements can significantly impact the duty rates for HS code 170490. The general impact is a reduction or elimination of tariffs, making imports more cost-effective. Key agreements and their effects include:

1. USMCA (United States-Mexico-Canada Agreement): Goods originating from Canada and Mexico may benefit from preferential duty rates, often resulting in duty-free entry for qualifying confectionery.
2. EU Free Trade Agreements: The European Union has numerous FTAs with countries like Canada (CETA), Japan, South Korea, and various African, Caribbean, and Pacific (ACP) nations. These agreements often provide reduced or zero duty rates for originating goods classified under 170490.
3. UK Free Trade Agreements: Post-Brexit, the UK maintains its own set of FTAs, including those with countries like Japan, Australia, and New Zealand, which can offer preferential access.
4. Bilateral Agreements (e.g., US FTAs): The U.S. has FTAs with countries such as Australia (AU), Chile (CL), South Korea (KR), and Singapore (SG). These agreements often list specific tariff treatments, sometimes referencing special program numbers (e.g., 9822.04.25 for Australia under the US system) that grant reduced or zero duties.

To benefit from these agreements, importers must ensure the confectionery originates from a partner country and obtain a valid Certificate of Origin. The specific preferential rate and eligibility criteria must be confirmed against the text of each trade agreement and the importing country's tariff schedule.